How Representative Payees Help Manage Benefits

What does a representative payee do?

Among a range of duties, payees must:

• Use the beneficiary’s Social Security or SSI payments to meet that person’s essential needs, such as food, shelter, household bills and medical care. The money can also be used for the beneficiary’s personal needs, such as clothing and recreation.
• Keep any remaining money from benefit payments in an interest-bearing bank account or savings bonds for the beneficiary's future needs.
• Keep records of Social Security payments received and how the money was spent or saved.
• Report to Social Security any changes or events that could affect the beneficiary's payments (for example, a move, marriage, divorce or death).
• Report any circumstances that affect the payee’s ability to serve in the role.

Payees cannot mingle the beneficiary’s Social Security income with their own money or use it for their own needs. The bank account into which benefits are deposited should be fully owned by the beneficiary, with the payee listed as financial agent.

Some payees, generally those who do not live with the beneficiary, are required to submit annual reports to Social Security accounting for how benefits are used. In this situation, you can file reports online using your own My Social Security account. You’ll find more on carrying out this role in the SSA’s FAQ for representative payees and in the Social Security publication “A Guide for Representative Payees.”

What if I have power of attorney?

Having power of attorney for a Social Security recipient does not authorize you to manage their benefits. The Treasury Department does not recognize a power of attorney for dealing with federal payments, including Social Security and SSI. A power of attorney can do this only if they also apply to become the beneficiary’s representative payee.

By the same token, a representative payee has no legal authority to manage someone’s financial affairs outside of Social Security or to make health care decisions. A payee’s duties are limited to managing Social Security and SSI payments.

Who needs a representative payee?

By law, the SSA must designate payees for most minor children who receive benefits and for all adult beneficiaries whom a court has determined to be legally incompetent. Otherwise, the agency presumes an adult is capable of managing their payments but may act if there are indications a beneficiary needs help, such as:

• A physician’s assessment of a beneficiary’s abilities.
• Observations made by SSA personnel during a face-to-face interview with a beneficiary.
• Statements made by a beneficiary’s family or friends.

If you believe someone you know may need a representative payee, call Social Security’s national customer service line (800-772-1213) or contact your local SSA office and make an appointment to discuss the matter.

If the SSA determines you need a payee, it will notify you by mail. If you disagree, or you wish to have a payee other than the one the SSA selects, you can appeal their decision.

Who can serve as a representative payee?

Generally, the SSA looks for individuals who know and are in regular touch with the beneficiary, such as a spouse, parent, another family member or a close friend. If the beneficiary lives with someone, that person will typically be selected, if they meet Social Security’s other criteria (see below). The SSA might also select a lawyer or legal guardian to fill the role, or an organization or institution such as a nursing home or social service agency.

Candidates must complete an application (form SSA-11-BK) and undergo SSA vetting, which typically includes a face-to-face interview. Payees must:

• Be willing and able to fulfill the duties or a representative payee.
• Not have a felony conviction.
• Not be a creditor of the beneficiary.
• Not have misused benefit payments in a prior stint as a payee.

Can I choose my representative payee?

Only the SSA can formally appoint a representative payee, but you have the option of recommending up to three people who could serve as your payee if the need arises. This “advance designation” is not an appointment, but the SSA is legally obligated to give your choices strong weight.

Any adult who is applying for or receiving Social Security or SSI can make an advance designation, provided they are still capable of managing their payments at the time. (Child claimants and beneficiaries cannot designate a payee unless they have been declared an “emancipated minor” under the laws of their state.)

You can submit your list online if you have a My Social Security account, by phone to the SSA’s national customer service line, 800-772-1213, or in person at a local field office (call the 800 number to schedule an appointment). You can change your choices or withdraw advance designation at any time. Social Security will contact you periodically to check if you want to review or update your selections.

Your designation comes into play if the SSA determines that you are no longer capable of managing benefit payments on your own. They will consider your choices first, in the listed order, and appoint the first one who meets the criteria to serve in the role. Only if all your designees are found unsuitable will Social Security consider other options.